[GUEST ACCESS MODE: Data is scrambled or limited to provide examples. Make requests using your API key to unlock full data. Check https://lunarcrush.ai/auth for authentication information.]  TheValueist [@TheValueist](/creator/twitter/TheValueist) on x 1549 followers Created: 2025-01-15 13:55:13 UTC It is telling that the PE owners of $CPN - Calpine are willing to take this much $CEG stock. (Wall Street Journal) -- Energy Capital Partners and other backers of power plant operator Calpine made a big bet by selling the company to Constellation Energy and agreeing to wait as much as two years or more to fully realize the potential profits from their investment, which might top $XX billion. Constellation agreed to pay $XXX billion in cash and XX million shares for Calpine valued at $XXXX billion when the transaction was announced Friday. The value of the shares rose to $XXXXX billion by Monday's close as the market reacted to the deal. The immediate gain suggests Calpine's sellers, which, in addition to Energy Capital Partners, include the Canada Pension Plan Investment Board in Toronto and Access Industries, an investment firm in New York, made a good bet in agreeing to an 18-month lockup for the shares they would get when the deal closes. "It's a fairly large component of stock," said Paul Zimbardo, a utilities-focused securities analyst at investment bank Jefferies Financial Group. "You typically don't see sellers willing to take that much equity as payment, particularly in the power and utilities industries." Summit, N.J.-based Energy Capital Partners, also known as ECP, led the roughly $XXX billion deal that took Calpine private in 2018 with Access Industries and CPP Investments, as the Canadian pension investor is known. ECP invested $X billion in the deal. Calpine has distributed around $XXX billion in dividends to its backers over the years, according to ECP. Combined with the sale proceeds, that puts the sellers' paper profit from the investment at $XXXXX billion as of Monday. The deal is expected to close by year's end, subject to regulatory approvals. That means for what is likely to be over two years, Calpine's backers will watch their total return fluctuate with Constellation's share price. "It is an endorsement of Constellation to take that stock lockup," Zimbardo said. "By their actions, they are effectively bullish that Constellation will get more data-center deals than the market expects." Indeed, as Constellation Chief Executive Joseph Dominguez said during a call with securities analysts and investors Friday, "Calpine's owners equally believe in the value creation potential of the combined company as evidenced by their willingness to transact in mostly stock and their commitment to remain owners for a period of time." Surging demand for electricity to power new factories and data centers has boosted power company stocks, with nuclear-energy specialist Constellation seeing its share price more than double in the past year. The Baltimore company last year agreed to supply technology giant Microsoft's data centers with electricity produced by the Three Mile Island nuclear plant in Pennsylvania after its planned restart in 2028. The number and value of agreements that Constellation secures, as well as the electricity rates it can charge, will be one of the "biggest factors" driving the company's future share price, according to Zimbardo. He pointed to uncertainties around total electricity demand, including from data centers in an evolving artificial-intelligent market. "The stock prices of all of these power companies are embedding a lot of value for data centers," he said. "That's really both the biggest risk and opportunity for power companies -- if you can sell more electricity from your portfolio at a higher price than what the market is embedding." XXX engagements  **Related Topics** [investment](/topic/investment) [constellation](/topic/constellation) [coins energy](/topic/coins-energy) [wall street](/topic/wall-street) [$ceg](/topic/$ceg) [$cpn](/topic/$cpn) [constellation energy corp](/topic/constellation-energy-corp) [stocks utilities](/topic/stocks-utilities) [Post Link](https://x.com/TheValueist/status/1879527764631429511)
[GUEST ACCESS MODE: Data is scrambled or limited to provide examples. Make requests using your API key to unlock full data. Check https://lunarcrush.ai/auth for authentication information.]
TheValueist @TheValueist on x 1549 followers
Created: 2025-01-15 13:55:13 UTC
It is telling that the PE owners of $CPN - Calpine are willing to take this much $CEG stock.
(Wall Street Journal) -- Energy Capital Partners and other backers of power plant operator Calpine made a big bet by selling the company to Constellation Energy and agreeing to wait as much as two years or more to fully realize the potential profits from their investment, which might top $XX billion. Constellation agreed to pay $XXX billion in cash and XX million shares for Calpine valued at $XXXX billion when the transaction was announced Friday. The value of the shares rose to $XXXXX billion by Monday's close as the market reacted to the deal. The immediate gain suggests Calpine's sellers, which, in addition to Energy Capital Partners, include the Canada Pension Plan Investment Board in Toronto and Access Industries, an investment firm in New York, made a good bet in agreeing to an 18-month lockup for the shares they would get when the deal closes. "It's a fairly large component of stock," said Paul Zimbardo, a utilities-focused securities analyst at investment bank Jefferies Financial Group. "You typically don't see sellers willing to take that much equity as payment, particularly in the power and utilities industries." Summit, N.J.-based Energy Capital Partners, also known as ECP, led the roughly $XXX billion deal that took Calpine private in 2018 with Access Industries and CPP Investments, as the Canadian pension investor is known. ECP invested $X billion in the deal. Calpine has distributed around $XXX billion in dividends to its backers over the years, according to ECP. Combined with the sale proceeds, that puts the sellers' paper profit from the investment at $XXXXX billion as of Monday. The deal is expected to close by year's end, subject to regulatory approvals. That means for what is likely to be over two years, Calpine's backers will watch their total return fluctuate with Constellation's share price. "It is an endorsement of Constellation to take that stock lockup," Zimbardo said. "By their actions, they are effectively bullish that Constellation will get more data-center deals than the market expects." Indeed, as Constellation Chief Executive Joseph Dominguez said during a call with securities analysts and investors Friday, "Calpine's owners equally believe in the value creation potential of the combined company as evidenced by their willingness to transact in mostly stock and their commitment to remain owners for a period of time." Surging demand for electricity to power new factories and data centers has boosted power company stocks, with nuclear-energy specialist Constellation seeing its share price more than double in the past year. The Baltimore company last year agreed to supply technology giant Microsoft's data centers with electricity produced by the Three Mile Island nuclear plant in Pennsylvania after its planned restart in 2028. The number and value of agreements that Constellation secures, as well as the electricity rates it can charge, will be one of the "biggest factors" driving the company's future share price, according to Zimbardo. He pointed to uncertainties around total electricity demand, including from data centers in an evolving artificial-intelligent market. "The stock prices of all of these power companies are embedding a lot of value for data centers," he said. "That's really both the biggest risk and opportunity for power companies -- if you can sell more electricity from your portfolio at a higher price than what the market is embedding."
XXX engagements
Related Topics investment constellation coins energy wall street $ceg $cpn constellation energy corp stocks utilities